HPQ Materials is an Australian company planning to become a producer/supplier of High Purity Quartz Sand to the solar PV and semiconductor industries. China is the biggest buyer of HPQS but is solely reliant on imported HPQS from the USA which is now a key supply chain issue.
The Company expects to commence sales, in the near term, of its initial HP5 product for various high-tech applications at a sale price USD$3,500 per tonne. In parallel, the company is developing its higher purity Crucible product (HP7 – market price USD7,500 per tonne) and semiconductor grade products (HP9 – market price USD12,000+ per tonne).
The Company has to date raised A$5.0m with these funds used to acquire the mining lease, establish JORC Inferred resource volumes, extensively assay the resource purity and to build HPQS pilot production facilities to achieve initial viable sales product in Melbourne. All completed successfully.
The Company is now seeking to raise next round funding:
1 – commence the build of its full-scale HP5 production facility to produce and sell HP5 in commercial quantities to China with a view to achieving first sales by Q3 2019;
2 – Simultaneously build a pilot plant for HP7 testing/production; and
3 – Provide for stock exchange listing preparation costs
The Company has achieved a number of significant milestones since inception:
– JORC report: 1.8mn tonnes high purity quartz Inferred resource; 20+ year project life.
– HP5 as minimum viable product: Used by Solar PV Crucible Manufacturers for Outer Layers of crucible.
– High product demand: The Company has recently visited China and held detailed discussions with 22 solar PV manufacturing companies in China and has signed sales and testing LOI’s with 6 Chinese entities to date. This process is expected to result in binding sales agreements for at least the first 5-10 years of planned production of solar grade material, as a minimum.
Additional interest exists from Japan and Korea as well as a blue-chip European entity. Demand is strong and growing and security of supply is a concern globally because of the USA based monopoly on supply/resource risk.
Successful production of HP7 would provide significant upside in the short term (post tax NPV10% of A$1Billion).
HPQ Materials will be showcasing their mining projects to prospective investors at the International Mining and Resources Conference. Claim your complimentary investor pass.